economy
Metal Shock: Gulf's Largest Aluminum Producer Declares Force Majeure
Iranian drone and missile strikes damaged Taweelah smelter and forced it to shut down operations
TL;DR
- Emirates Global Aluminum (EGA) declared force majeure on contract book after Iranian strikes.
- The Al Taweelah smelter was shut down due to damage from Iranian missile and drone strikes.
- EGA is the Gulf's largest aluminum producer, accounting for 4% of global production.
- The outage adds to global aluminum market strain, already affected by Strait of Hormuz disruptions.
- Aluminum futures on the London Metal Exchange have surged by 50% from a year ago.
- The force majeure and chokepoint issues signal tighter global supplies and potential price increases.